Michael Jackson Died With $500 Million in Debt

Michael Jackson’s debts and creditor’s claims at the time of his death in 2009 totaled more than $500 million, according to a court filing by the pop superstar’s estate that provides details of his financial woes toward the end of his life.

Jackson owed about $40 million to the tour promoter A.E.G., according to the filing, which was made in Los Angeles County Superior Court this month and earlier reported by People magazine. The filing said that 65 creditors made claims against the singer after his death, some of which resulted in lawsuits, and that some of his debt had been “accruing interest at extremely high interest rates.”

A representative for the Jackson estate, which is executed by John Branca and John McClain, did not immediately respond to a request for comment. The estate filed the court papers as a request to authorize the payment of about $3.5 million to several legal firms for their work in the second half of 2018.

In the court filing, the executors say that they have eliminated the estate’s debt and that almost all of the creditors’ claims and litigation have been resolved.

Jackson earned hundreds of millions of dollars throughout the 1980s and 1990s as the creator of some of the biggest-selling albums of all time, along with dazzling concert tours that filled stadiums around the world. He bought the Beatles’ song catalog for $47.5 million in 1985 and later sold it to Sony/ATV Music in exchange for a 50 percent share in the company. Sony bought back the estate’s share for $750 million in 2016.

But when Jackson died at the age of 50, shortly before he was supposed to embark on a tour called This Is It, he left behind a tangled web of assets and liabilities.

Jackson was famous for his lavish lifestyle and spent money with abandon. He incurred millions of dollars in debt from his Neverland Ranch estate in Los Angeles and had a penchant for expensive art, jewelry and private jets. He was paying more than $30 million annually on interest payments, a forensic accountant testified during a 2013 wrongful-death trial in which A.E.G. prevailed.

The Jackson estate is currently in a dispute with the I.R.S. after a tax audit. In a separate court filing this year, the estate said that the federal agency accused it of undervaluing its assets and said it owed “an additional $700 million in taxes and penalties.”

Kirsten Noyes contributed research.

Related Posts

Republicans Share Their Wishlist for Trump

We posed a question to R.N.C. attendees in Milwaukee: If Donald Trump wins, what is the first thing you want him to do as president?

In Milwaukee, Black Voters Struggle to Find a Home With Either Party

Black voters make up roughly 5 percent of the electorate in Wisconsin. But in this swing state where the election is likely to be won by a…

How Donald Trump Picked J.D. Vance

How did J.D. Vance, once a harsh critic of Donald J. Trump, win Trump’s approval and become his choice for vice president? Jonathan Swan, a reporter covering…

Project 2025, Explained

A set of conservative policy proposals called Project 2025 has put into words what a second term for Donald J. Trump could look like. Trump has distanced…

Sailor Who Tried to Access Biden’s Medical Records Was Disciplined by Navy

A Navy sailor was disciplined for trying unsuccessfully to gain unauthorized access to President Biden’s restricted medical records earlier this year, a military official said on Tuesday….

Democrats, Swallowing Fears About Biden’s Candidacy, Remain Behind Him

Congressional Democrats indicated on Tuesday that they were unwilling — at least for now — to mount an effort to push aside President Biden despite grave concerns…

Leave a Reply

Your email address will not be published. Required fields are marked *